A flood of initial public offerings (IPOs) is set to hit the market between the months of October and December. As many as 35 companies are aiming to raise a record Rs 80,000 crore in the third quarter if the market remains stable, bankers said. In comparison, the previous record for a calendar year was in 2017 when 36 companies raised Rs 67,147 crore.
Paytm, Aadhar Housing Finance, Star Health & Allied Insurance, Policybazaar, Emcure Pharma, Adani Wilmar, and Nykaa are among those planning to raise between Rs 4,000 crore and Rs 16,600 crore in IPOs. Paradeep Phosphates, Vedant Fashions, CMS Infosystems, and Northern Arc are also expected to tap the market to raise Rs 2,000-2,500 crore in the December quarter, according to banking sources.
About 14 companies, including Paradeep Phosphates, Go Airlines, Ruchi Soya Industries, Arohan Financial Services, Utkarsh Small Finance and Fincare Small Finance, have already received approval from capital markets regulator, Securities and Exchange Board of India (Sebi), to raise around Rs 22,000 crore, while a further 64 companies have filed their draft red herring prospectuses.
Market participants said they were not worried about more money being funnelled into the primary market or diverted from the secondary market, which is hovering near record-high levels.
"With the kind of issues lined up, investors - including institutions - would deploy fresh money into IPOs rather than chasing the same listed stocks, and in fact, it would stop fuelling the asset bubble in the secondary market," said V Jayashankar, head of equity capital markets, Kotak Investment Banking.